In re PEGGY NESTOR v. ALBERT TOGUT, not individually but solely in his capacity as Chapter 11 Trustee

District Court, S.D. New York·Decided March 26, 2026·No. 1:25-cv-07217·Unknown

Opinion

USONUITTEHDE RSTNA DTIESST RDIICSTT ROIFC TN ECWOU YROTR K ---------------------------------------------------------------------- X : In re PEGGY NESTOR, : : Debtor. : : 25-CV-7217 (JMF) ---------------------------------------------------------------------- X : MARIANNE NESTOR, : MEMORANDUM OPINION : AND ORDER Appellant, : : -v- :

: ALBERT TOGUT, not individually but solely in his : capacity as Chapter 11 Trustee, : : Appellee. : : ---------------------------------------------------------------------- X JESSE M. FURMAN, United States District Judge: Appellant Marianne Nestor (“Nestor”), proceeding without counsel, appeals from Orders of the United States Bankruptcy Court (Wiles, B.J.). Nestor is not herself a debtor; instead, she is an interested party in Chapter 11 proceedings that her sister, filed in 2023. Since that time, Nestor has filed up to twenty appeals from Orders of the Bankruptcy Court, every one of which has been rejected. See Nestor v. Lynx Asset Servs., LLC, No. 25-CV-4242 (KPF), 2025 WL 2444214, at *1 n.1 (S.D.N.Y. Aug. 25, 2025) (listing thirteen prior appeals by Nestor); ECF No. 8 (“Appellee’s Mem.”), ¶ 1 (asserting that this is Nestor’s twentieth appeal to this Court). In this, her latest appeal, Nestor challenges a ruling by the Bankruptcy Court that certain items are “fixtures” and thus “part of” a townhouse on East 63rd Street (the “Townhouse”) that Nestor has intermittently claimed to own together with her sister. See In re Nestor, 673 B.R. 67, 101-02 (Bankr. S.D.N.Y. 2025). Liberally construed, see Tracy v. Freshwater, 623 F.3d 90, 101 (2d Cir. 2010), Nestor’s appeal contends that the Bankruptcy Court erred in finding that the items, including mantelpieces, are fixtures because they are removable, see ECF No. 7 (“Appellant’s Mem.”), at 5-7; ECF No. 11 (“Appellant’s Reply”), at 5, 7. Appellee Albert Togut, in his capacity as Chapter 11 Trustee of the Nestor’s sister’s Estate, argues that the appeal should be dismissed because Nestor failed to comply with Rule 8014 of the Federal Rules of Bankruptcy Procedure. Appellee’s Mem. ¶¶ 31-41. In the alternative, he argues that the Bankruptcy Court’s Orders should be affirmed on the merits. Id. ¶¶ 42-52. Togut is certainly correct that Nestor’s brief suffers from serious deficiencies, including a failure to comply with the requirements for briefs set forth in Rule 8014. He is also correct that failure to comply with that Rule can be a basis for dismissal of an appeal. See, e.g., Shah v.

Motors Liquidation Co. GUC Tr., No. 12-CV-8783 (JPO), 2013 WL 12085091, at *6 (S.D.N.Y. June 3, 2013) (finding that failure to comply with Bankruptcy Rule 8014, formerly Rule 8010, “is a sufficient basis to dismiss Plaintiff’s appeal, particularly given this Court’s leniency with Plaintiff concerning Rule 8009”). But the Court will not dismiss on that basis, given both the special solicitude to which Nestor is entitled as a pro se litigant and the fact that her appeal is easily rejected on the merits. See, e.g., In re Motors Liquidation Co., No. 15-CV-3307 (VEC), 2015 WL 4523241, at *2 (S.D.N.Y. July 24, 2015) (“Appellee observes that Appellant’s brief fails to comply with the requirements of Bankruptcy Rule 8014 . . . but . . . the Court need not decide this appeal on that formalistic basis.”); In re Stephenson, Nos. 96-CV-557, 558 (DC), 1996 WL 403087, at *1 (S.D.N.Y. July 18, 1996) (“I need not dismiss Appellant’s appeal on . . .

procedural ground[s], however, because his appeal is without merit.”); Bongiovanni v. Grubin, No. 08-CV-3534 (CBA), 2010 WL 3927042, at *2 (E.D.N.Y. Sept. 30, 2010) (same). As noted, Nestor challenges the Bankruptcy Court’s determination that certain items in the Townhouse are “fixtures.” Some courts have held that whether an item constitutes a fixture is a question of fact, see, e.g., Washington Metro. Area Transit Auth. v. Precision Small Engines, 227 F.3d 224, 227 (4th Cir. 2000); Jo v. JPMC Specialty Mortg., LLC, 131 F. Supp. 3d 53, 59 (W.D.N.Y. 2015); Canilao v. City of Com. Invs., LLC, No. 20-CV-8030 (EMC), 2022 WL 10584985, at *10 (N.D. Cal. Oct. 18, 2022), and thus is reviewable only for “clear error,” In re MPM Silicones, LLC, 596 B.R. 416, 427 (S.D.N.Y. 2019). Others have held that it is a mixed question of law and fact. See, e.g., Dunellen LLC v. Getty Props. Corp., 557 F. Supp. 2d 263, 270-71 (D.R.I. 2008) (collecting cases), aff’d, 567 F.3d 35 (1st Cir. 2009). But even then, rulings are subject to the clearly erroneous standard if “the question is predominantly . . . factual.” In re Kaspar, No. 24-CV-9314 (JMF), 2025 WL 1784812, at *3 (S.D.N.Y. June 27, 2025) (internal quotation marks omitted) (quoting In re Grubb & Ellis, 523 B.R. 423, 437

(S.D.N.Y. 2014)). Whether the issue in this appeal is a question of fact or a mixed question of law and fact, it is predominantly factual and, thus, reviewable only for clear error. That lenient standard “permits the Court to set aside the Bankruptcy Court’s factual findings only if the Court is ‘left with the definite and firm conviction that a mistake has been committed.’” In re Mattei, No. 23- CV-6093 (PMH), 2024 WL 1598225, at *3 (S.D.N.Y. Apr. 12, 2024) (quoting Sacerdote v. N.Y. Univ., 9 F.4th 95, 119 (2d Cir. 2021)). Here, there was no clear error. The Bankruptcy Court judge in this case took the extraordinary step of personally visiting the Townhouse and visually inspecting the items at issue (in the company of Nestor, Togut, and a videographer, among others) and then held a trial during which he heard testimony from Nestor and received various exhibits, including Nestor’s deposition transcript. See In re Nestor, 673 B.R. at 85-87.1 0F Thereafter, the Bankruptcy Court issued a well-reasoned and thorough fifty-two page opinion explaining why the items at issue were fixtures and thus “part of” the Townhouse. In doing so,

1 Thus, Nestor is flat wrong in asserting that her deposition transcript was not “entered or used.” Appellant’s Mem. 5. the Bankruptcy Court correctly reasoned that the ultimate issue is one of intent and that removability — on which Nestor seems to focus exclusively here, see Appellant’s Mem. 5-7 — is only one factor in that analysis. See In re Nestor, 673 B.R. at 81; see also In re New York City Transit Auth., 553 N.Y.S.2d 785, 786-87 (N.Y. App. Div. 2d Dep’t 1990) (“Annexation, adaptability, and intention of permanence convert [an item] into a fixture, regardless of removability.” (cleaned up)). Ultimately, the Court concludes that there is no basis to second guess the Bankruptcy Court’s determination — based on its “own inspection of the property[,] . . . [t]he nature of the items, the manner in which they were attached, their intended use and function, and their customized contours” — that the items in dispute “were intended to be

permanent parts of the real property and are fixtures.” In re Nestor, 673 B.R. at 90-91; cf. Debary v. Harrah’s Operating Co., 465 F. Supp. 2d 250, 261 (S.D.N.Y. 2006) (“Determining intent is necessarily a factual endeavor.”).

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In re PEGGY NESTOR v. ALBERT TOGUT, not individually but solely in his capacity as Chapter 11 Trustee, (S.D.N.Y. 2026).

In re PEGGY NESTOR v. ALBERT TOGUT, not individually but solely in his capacity as Chapter 11 Trustee (In re PEGGY NESTOR v. ALBERT TOGUT, not individually but solely in his capacity as Chapter 11 Trustee) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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